New kids on the block

That sidelines the ethical quandary about destroying embryos for research. And Fate’s technology for producing iPSCs, which uses small molecules instead of methods that require inserting genes through a virus, sets the stage for safer, faster and cheaper production of stem cells.

Fate, which received $15 million in venture capital funding in 2008, was co-founded by top stem cell scientist Dr. Sheng Ding of The Scripps Research Institute, as well as high-profile stem cell experts at Harvard, Stanford and other research institutes.

The company, which employs 40 in San Diego and Canada, raised an additional $30 million last year.

“We are capitalized well enough that we can really focus on building a substantial company around stem cell modulation,” said Paul Grayson, chief executive of Fate Therapeutics. “So right now we are in ‘let’s do something cool’ mode.”

Though many companies are tinkering with using stem cells as therapies on their own, to be infused directly into the body, Fate isn’t headed in that direction yet. Instead, the company is using iPSCs to screen for potential new drugs that will treat disease by activating the body’s own adult stem cells.

Fate began this year to test an experimental stem-cell-boosting drug in cancer patients who are getting stem cell transplants to rebuild their immune systems after chemotherapy.

The company also has early clinical programs for drugs that aid in bone formation, heart function and diabetes.

Keith Murphy is CEO of Organovo, which uses proprietary machines and "bio-ink" (a fluid made up of cells) to create living tissue.— John Gastaldo / Union-Tribune

Think of it as a super printer that makes more than lifelike images — it creates living things.

With a technology licensed from the University of Missouri, San Diego’s Organovo has developed a 3-D “bio-printer” that uses “bio-ink” — a fluid of cells — that can build human tissue and blood vessels.

The company is a new take on the tricky science of tissue engineering, which has been a minefield for some companies, notably San Diego’s deceased Advanced Tissue Sciences.

Old methods relied on scientists growing cells on polymer scaffolding, an arduous and hands-on process that proved too costly for the marketplace.

Organovo’s bio-printer lays down spheres of cells — each sphere contains 1,000 to 10,000 cells — in a pattern. The cells grow together to form tissue, and as more layers of bio-ink are added, a 3-D structure takes shape.

It takes about an hour to make a 5-centimeter piece of tissue, according to Organovo Chief Executive Keith Murphy.

“Because this is natural — we don’t use any artificial polymer — there isn’t the risk of rejection,” said Murphy, whose San Diego company employs 15. “It is very exciting technology because it leverages the power of cells to do what they know how to do.”

Someday, the technology might be used to create kidneys and other organs for transplant. But the immediate goal is to engineer blood vessels that can be used for bypass operations, said Murphy.

The company hopes to begin clinical testing in patients by 2012.

The device, dubbed the NovoGen MMX, is also being sold to research institutions so scientists can use it in their own experiments with tissue engineering.